re: How much money do you put in savings every paycheck? (Posted on 12/4/12 at 4:12 pm to Too Frat To Care)

The rule of thumb that I see most quoted is 10% of disposable income. As a nation, that hasn't been achieved since the mid 1980's.

I (1) max out my HSA, (2) max out my Roth IRA, (3) 15% of gross goes into my 401k, and (4) sweep what amounts to another 15% of gross into a self directed brokerage account. My personal savings rate is about 43%. Gains/interest/dividends get reinvested. Bonuses go to the single mother scholarship fund. It's my goal to grow my net worth by 5% to 8% per quarter for the next two years.

re: How much money do you put in savings every paycheck? (Posted on 12/4/12 at 8:11 pm to notiger1997)

quote:Are you buying land, or investing into a fund, etc?

I buy rental properties in high rental markets all over. Not too mention equity capture(if bought correctly), market appreciation, positive cashflow, principle paydown, tax advantages like the depreciation deduction and last but not least.... if you decide to sell, you can roll the profits into a 1031 tax exchange to defer the capital gains tax. When you pass the properties down to your children, they take over the property at the new cost-basis, wiping out all the capital gains tax.

I already have a REIT in my ROTH IRA but I am not using that as an example here.

re: How much money do you put in savings every paycheck? (Posted on 12/4/12 at 10:22 pm to jclem11)

quote:I put 6% in 401K to get the company match. I do not have any other retirement accounts set up. I have $11.5K in student loans to pay off at roughly 5% interest. Should I put all my extra money towards them to get them paid off ASAP and then start saving or try to do them both?

Absolutely keep contributing up to the match on your 401k. That is free guaranteed money.

Put every other dime you can towards knocking those student loans out.

re: How much money do you put in savings every paycheck? (Posted on 12/5/12 at 10:44 am to Too Frat To Care)

I actually save about 65% of what I clear on my paycheck. Most goes into my checking but I also have an auto deposit linking my checking account to my brokerage account. Typcially I invest about 15-20% of what I save.

re: How much money do you put in savings every paycheck? (Posted on 12/5/12 at 12:09 pm to braindeadboxer)

I max 401k for my wife and I. We own the company and are both over 50 so I think that works out to $22500 each a year.

I also set aside $1000 a paycheck for savings. Payroll is every two weeks so that's another $26000 a year.

An additional $5k goes into IRAs for each of us every year.

Then I save cash and stick it in a drawer in my office. $100 every two weeks and I don't spend $1 bills so all those go into the drawer as well.

I'm looking for more ways to put cash away for us. I want to get to well over $100k a year but I have a ways to go to get there. One just out of college and one in college right now. There's over $1000 a month more I'll put away once he's done.